Islamic Finance: A Corollary to Legal Pluralism or Legal Diversity in South Africa and the Netherlands

Omar Salah, C. Rautenbach

Research output: Contribution to journalArticleScientificpeer-review

Abstract

In this contribution we discuss the position of Islamic finance in South Africa and the Netherlands in the light of legal pluralism and legal diversity in each legal system. Islamic finance is based on Islamic law, which is a set of moral and religious principles. According to Islamic law, the payment and receipt of riba (interest) and gharar (contractual uncertainty) are forbidden. Consequently, alternative Islamic finance contracts are structured where the financier makes a profit either through trade in tangible assets or through a profit-and-loss-sharing arrangement, instead of making profit through charging interest.
Original languageEnglish
Pages (from-to)488-515
Number of pages28
JournalComparative and international law journal of Southern Africa
Volume48
Issue number3
Publication statusPublished - 2015

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